A letter to business owners providing employee benefits.

(Employee Benefit Liability Coveraged)

Imagine this for a moment: you must make the difficult decision to let one of your employees go. Your company offers the option for them to continue receiving health benefits through the group plan, as long as they continue making their premium payments and only for an additional six months. The ex-employee exercises this option upon termination.

Four months later the ex-employee files a medical claim to the tune of $354,000. To your surprise, you find out the ex-employee never made a premium payment and your HR Director never caught it. The ex-employee was never removed from the plan and the insurance company is denying the claim. Because of the error in administration you are staring at a sizable bill. What do you do? 

Sadly, this is a real story and its not the only one like it. We are human and clerical errors happen, especially when managing a large employee benefit program. Is there any relief from errors like this? Is there any protection your company can receive that will protect you if such an error occurs? 

Fortunately, there is! Enter the Employee Benefits Liability Coverage. This is an endorsement that modifies your commercial general liability coverage to include damages caused by an act, error or omission by the insured in the administration of the employee benefit program. This coverage carries an occurrence limit of up to $1,000,000 and $2,000,000 aggregate. 

Employee benefits are important to our businesses and to our employees. Benefits are a large reason why people choose to work for our companies. Benefits offer protection and security to families making it appealing to come to work each day. That same protection and security can be attained by the business through the Employee Benefits Liability Endorsement. 

Speak to your commercial insurance advisor or give us a call to discuss this coverage.

Sincerely,

Jesse C Biretz, Vice President  James B Murdoch Insurance Group, Inc.